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Comerica (CMA) Beat on Q1 Earnings on High Revenues

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Have you been eager to see how Comerica Incorporated (CMA - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Texas-based money center bank’s earnings release this morning:

An Earnings Beat

Comerica came out with adjusted earnings per share of $1.02, beating the Zacks Consensus Estimate of $1.01.  Higher revenues and lower non-interest expenses were primarily responsible for this earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Comerica depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 days.

However, Comerica has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.7% in the trailing four quarters.

Revenue Came In Higher Than Expected   
 
Comerica posted revenues of $741 million, which surpassed the Zacks Consensus Estimate of $735.1 million. Also, it compared favorably with the year-ago number of $691 million.

Key Stats to Note:
 

  • Average total deposits: $57.8 billion in Q1, up 1.9% on a year-over-year basis.
     
  • Average total loans: $47.9 billion in Q1, down slightly on a year-over-year basis.
     
  • Provisions for credit losses: $16 million in Q1, down 89.2% on a year-over-year basis

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Comerica. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank stocks here.)

Check back later for our full write up on this Comerica earnings report!

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